Coca-Cola Expands Capacity in Fast-Growing Indonesian Market with Opening of Two New Production Line

The chairmen of Coca-Cola Amatil (CCA) and The Coca-Cola Company today officially opened two new production lines at the Coca-Cola Amatil Indonesia (CCAI) Cikedokan Plant in Bekasi, West Java.

The chairmen of Coca-Cola Amatil (CCA) and The Coca-Cola Company today officially opened two new production lines at the Coca-Cola Amatil Indonesia (CCAI) Cikedokan Plant in Bekasi, West Java. This marks the first of several major investments being made as The Coca-Cola Company invests US $500 million to accelerate growth in the Indonesian market in the next three to four years. This incremental investment builds on the US $1.2 billion the Coca-Cola System has invested in Indonesia in the last 25 years.

“We consider Indonesia a promising market and one of the growth engines to achieve our long-term vision,”  “Our Company’s US $500 million investment reaffirms our belief in Indonesia and will help us capture the growth opportunity in one of the largest and most dynamic countries in the world as we enable our system to be even more responsive to consumer and customer needs.

The Coca-Cola Company last October announced plans to invest US $500 million into Coca-Cola Amatil’s local Indonesia subsidiary in return for an ordinary equity ownership interest of 29.4%, with the funds invested into CCAI operations in Indonesia to support accelerated expansion of production, warehousing and cold- drink infrastructure. This investment will have a multiplier effect on local jobs, taking the Coca-Cola system’s total direct and indirect employment in Indonesia from approximately 60,000 to a total of 135,000 within three to four years. The investment is subject to completion of Indonesia regulatory requirements.

In the past three years alone, CCAI commissioned 18 new production lines, deployed 150,000 coolers and built three mega distribution centers to increase capacity and build local capability with total investments exceeding US $300 million.

CCA’s Group Chairman David Gonski said: Coca-Cola Amatil is committed to building a future hand-in-hand with our partners, customers and consumers in Indonesia. The upcoming joint venture is an important step for us in accelerating our efforts to create a strong future for our communities and businesses in the areas in which we operate.”

Between now and 2020 the global nonalcoholic ready-to-drink beverage category is expected to grow in retail value by approximately $300 billion. Indonesia represents one of the fast-growing segments of this global opportunity. With a population of more than 240 million people, the country boasts the world’s fourth largest population and a large, emerging middle class with underdeveloped consumption rates of nonalcoholic ready-to-drink beverages.

The Coca-Cola system has been operating in Indonesia for 88 years. Currently, the Coca-Cola system markets 16 brands, operates 10 bottling plants across the country, directly employs more than 12,000 Indonesians with more than 200 sales and distribution centers, and serves directly more than 520,000 large and small retail outlets every week.